Fox News "Your World" - Transcript

Interview

Fox News "Your World" - Transcript

MR. CAVUTO: Democratic Congresswoman Maxine Waters taking a look at all this, too, a crucial member of the Financial Services Committee.

Congresswoman, always good having you on. Thank you for joining us.

REP. WATERS: You're welcome.

MR. CAVUTO: Do you think we're going to have a deal?

REP. WATERS: I heard that there was an agreement in principle, and I do think that there will be legislation that will deal with this rescue or bailout, whatever you want to call it.

MR. CAVUTO: So Congresswoman, what got us to this point where we went from no deal, no deal, to very likely a deal? What did it?

REP. WATERS: Well, I think more information, a better understanding about the implications of this bailout and what was going on in the country. Many Americans were saying, what does this have to do with me? I think that it has taken a long time, but they're better understanding the implications for the average person, the fact that credit could dry up, there could be no credit for home loans, there could be no credit for even student loans, there could be no credit for buying a car, there could be no credit for small businesses who have to make payroll.

I think that more and more, that is understood, that people are thinking a little bit better about it. And the members are learning a lot more about it. But just to have it dropped on your head to say we've got to have $700 billion without deep explanation, you could not expect people to warm up to that very easily.

MR. CAVUTO: Let me ask you -- you might be right, Congresswoman. Because apparently what got them off the, you know, this Mexican standoff was this notion of a phased-in sort of a rescue. I don't know how it's going to be phased in, ma'am, and I guess that's what we're still waiting for. But it would seem to imply oversight -- that's me making the leap, and I could be very wrong -- beyond just the Treasury, which is something you wanted, a lot of conservative Republicans wanted. Right?

REP. WATERS: Well, everybody wants tough oversight. And you're right. There's been a lot of talk on both sides of the aisle about phased-in oversight and phased-in expenditure of this money. For example, why do we have to have $700-and-anything billion? Why can't we start out with maybe 2 (billion dollars) or 3 (billion dollars) and see how that works. So you're right, there's been a lot of discussion on both sides of the aisle about that.

MR. CAVUTO: Well, one of the things I know you wanted, Congresswoman, was something -- and if you'll forgive me, I'm getting details off of our fine Fox folks here -- about providing protections for those late on their mortgages, what they're calling the homeowner provision.

REP. WATERS: Yes.

MR. CAVUTO: And apparently it does call for, as I know you and others have advocated, monies for helping folks with their mortgages. There's arcane language for this, but I think I got that interpreted correctly. Do you know what you're looking at? How many you're looking to help? What the cost of that might be?

REP. WATERS: Well, no, I don't know the exact cost, but I'm focused on what is known as loan modifications. Servicers are now responsible for collecting these mortgages. The way that these loans were packaged and securitized and invested in, it does not have the local banker that's still got this in their portfolio.

And so you have these services out here who have the business of servicing these loans, and they're the ones who can do the loan modifications. We've got to strengthen that whole thing and make it possible for them to work out and do modifications so people can stay in their homes, yes.

MR. CAVUTO: You know what I'm thinking of, Congresswoman, because the 90-plus percent, whatever it is, of homeowners who are paying their mortgages off on time, month in and month out, and they're going to say, man, oh, man, these guys, who for whatever reason got into a pickle, they're getting bailed out, they're getting help. I'm doing my damnedest to pay my bills, and no one's saving my ass. What do you tell them?

REP. WATERS: Well, first of all, a loan modification is not getting bailed out. A loan modification is restructuring of the loans.

MR. CAVUTO: Yeah. But these other people aren't having anything restructured, you know. They would love to have a lower-interest loan or more --

REP. WATERS: Well, they can, they can.

MR. CAVUTO: Everybody?

REP. WATERS: They can.

MR. CAVUTO: Everybody?

REP. WATERS: Yes. Every bank has what is known as loss mitigation departments. And if you go in to your banker and you say, look, I'm not making as much money, I've been laid off for a while. While I've been paying $3,000 a month, I can only afford 2,000 (dollars). They have a responsibility to sit down with you and help you work it out.

MR. CAVUTO: Man, oh, man. Sign me up. The gravy boat's come in, right?

REP. WATERS: What people should do is call in to their bankers and get to the services and lay out for them what their problems are.

MR. CAVUTO: Okay, gotcha.

REP. WATERS: Yes, absolutely.

MR. CAVUTO: Congresswoman, I didn't know that. My entire crew just left. They're calling right now.

REP. WATERS: All right.

MR. CAVUTO: Congresswoman, thank you very much.

REP. WATERS: You're welcome.

MR. CAVUTO: Very good having you.

REP. WATERS: Thank you. Thank you very much.

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